The effects of firm IT capabilities on firm performance: the mediating effects of process improvement

Prior research has examined the direct relationship between the firm IT capabilities and firm performance. Here, we extend that stream of literature and examine the mediating effects of performance at the process level on the relationship between firm IT capabilities and firm performance. This paper draws on the resource-based theory and the dynamic capabilities perspective to develop a theoretical framework to examine the mediated effects. The results suggest that the effect of firm IT capabilities on firm performance is mediated through performance at the process level.